Iran: a new natural gas supplier for Europe? | beyondbrics:
"With its 34tn cubic metres of natural gas, enough to satisfy current EU natural gas demand for 90 years, Iran has the biggest gas reserves in the world. Despite this rich natural endowment, the country has not yet translated potential into reality. Paradoxically, its natural gas production continues to be barely sufficient to satisfy its own domestic consumption.
There are two reasons for the under-exploitation of Iran’s natural gas resources: the international sanctions regime (which has targeted the country’s energy sector since 2007, completely halting the activities of international energy companies) and the country’s legal petroleum framework (the so-called ‘buyback scheme’, encumbered by very unattractive terms for international energy companies).
Since the election of Hassan Rouhani as president of Iran in 2013, a new political phase has begun, leading to the long-awaited July 2015 nuclear deal that foresees lifting most of the international sanctions in exchange for limits on Iran’s nuclear programmes. This is a historical step that could reshape the Iranian economy in general and its energy sector in particular."
'via Blog this'
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